Sangamo BioSciences Reports First-Quarter Financial Results

Apr 25, 2001, 01:00 ET from Sangamo BioSciences, Inc.

    RICHMOND, Calif., April 25 /PRNewswire/ --
 Sangamo BioSciences, Inc. (Nasdaq:   SGMO) today reported financial results for
 the first quarter ended March 31, 2001.  The core net loss, which excludes
 non-cash charges, was $1.3 million, or $0.06 per share.  In the comparable
 quarter of 2000, Sangamo reported a core net loss of $837,000, or $0.15 per
 share.  Non-cash charges were $803,000 in the first quarter of 2001 as
 compared to non-cash charges of $3.4 million in the first quarter of 2000.
 Including the non-cash charges, the net loss was $2.1 million, or $0.09 per
 share in the first quarter of 2001 as compared to a net loss of $4.2 million,
 or $0.71 per share, in the same period last year.
     Revenues for the first quarter of 2001 were $634,000 as compared to first
 quarter 2000 revenues of $807,000.  The principal components of first quarter
 2001 revenues were Universal GeneTools(TM) revenues and revenues from
 Sangamo's partnerships in the areas of human therapeutics and plant
 agriculture.  During the first quarter of 2001, the company received payments
 of approximately $2 million from collaborators that management expects will be
 recognized as revenues in 2001.  As previously stated, Sangamo expects
 revenues to vary significantly by quarter.  The company also reiterated that
 management expects annual revenues to increase two to three times the level
 achieved in 2000.
     Sangamo recognizes revenues in accordance with the Securities and Exchange
 Commission (SEC) Staff Accounting Bulletin No. 101, which summarizes the
 SEC's views on applying generally accepted accounting principles to revenue
 recognition and specifically addresses revenue recognition for upfront
 non-refundable fees earned in connection with research collaboration
 agreements.  Upfront fees are required to be recognized over the term of the
 individual contract rather than at the time of receipt.
     Excluding the non-cash charges, total first quarter 2001 expenses were
 $2.9 million as compared to $1.7 million in the prior year period.  The
 increase in expenses was primarily due to greater research and development
 activity, which resulted in a 65 percent increase in expenses over last year
 and costs associated with being a public company.  Research and development
 expenses were $2.2 million for the three months ended March 31, 2001 as
 compared to $1.3 million for the first quarter of 2000.  General and
 administrative expenses were $644,000 for the first quarter of 2001 as
 compared to $371,000 for the same period last year.
     Non-cash expenses in the first quarter of 2001 totaled $803,000, as
 compared to $3.4 million during the same quarter of 2000.  Non-cash expenses
 in the first quarter of 2001 were due to stock-based deferred compensation
 charges.  The non-cash charges during the same period last year included a
 one-time expense of approximately $1.0 million for the issuance of common
 stock related to the licensing of certain technology and stock-based deferred
 compensation charges of $831,000.  The company also incurred a $1.5 million
 deemed dividend related to issuance of preferred stock during the first
 quarter of 2000.
     Net interest income for the first quarter of 2001 was $961,000 as compared
 to $70,000 in the comparable period last year.  The higher net interest income
 reflects the higher cash balances resulting principally from the company's
 initial public offering completed in April 2000.
     At March 31, 2001, the company had cash, cash equivalents, and investments
 of $63.9 million.  Cash used in operations during the first quarter of
 2001 was approximately $500,000.  Total shares outstanding at March 31, 2001
 were 22.3 million.  One year earlier there were 6.6 million shares
 outstanding.  The change in the number of shares outstanding was due primarily
 to the conversion of the company's preferred stock into common stock and the
 completion of the company's initial public offering.
 
     First-Quarter 2001 Highlights
 
     Highlights of the first quarter included:
     -- Sangamo was granted a patent in the United Kingdom that includes claims
        covering the activation or repression of any endogenous gene in any
        cell type, or organism, using ZFP transcription factors.  Similar
        applications with similar claims have been filed in many countries
        throughout the world.
     -- Sangamo established its first plant agriculture collaboration with
        Renessen LLC, a joint venture between Cargill and Monsanto Company
        using Sangamo's proprietary gene regulation technology to enhance the
        value of certain crops for the animal feed and processing industries.
     -- Sangamo reported the use of the company's proprietary zinc finger
        DNA-binding proteins (ZFPs) to regulate the production of vascular
        endothelial growth factor A (VEGF), a protein that plays a critical
        role in the formation of new blood vessels, and may be useful in the
        treatment of certain forms of cardiovascular disease.
     -- Sangamo obtained worldwide rights to a novel cell-based molecular
        screening system developed at The Massachusetts Institute of Technology
        and to certain technology developed at Harvard University.
 
     About Sangamo
     Sangamo is focused on the research and development of novel transcription
 factors for the regulation of gene expression.  Sangamo's Universal Gene
 Recognition(TM) technology enables the engineering of transcription factors
 known as zinc finger DNA-binding proteins, or ZFPs.  By engineering ZFPs so
 that they can recognize a specific gene, Sangamo has created ZFP transcription
 factors that can control gene expression and, consequently, cell function.
 The company intends to establish Universal Gene Recognition as a widely used
 technology for commercial applications in pharmaceutical discovery, human
 therapeutics, clinical diagnostics, agriculture, and industrial biotechnology.
 Over twenty leading pharmaceutical and biotechnology companies have utilized
 ZFPs.  In addition, Sangamo is developing novel ZFP-based therapeutics for the
 treatment of cardiovascular disease.  For more information about Sangamo,
 visit the company's web site at www.sangamo.com.
 
     This press release contains forward-looking information within the meaning
 of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
 Exchange Act of 1934, and is subject to the safe harbors created by those
 sections.  Actual results may differ materially from these forward-looking
 statements.  See the company's SEC filings, and in particular, the risk
 factors described in the company's Annual Report on Form 10-K and its most
 recent 10-Q.  Sangamo assumes no obligation to update the forward-looking
 information contained in this press release.  Further, Sangamo assumes no
 obligation to update any guidance given on its upcoming conference call.
 
 
                           SELECTED FINANCIAL INFORMATION
                      (In thousands, except per share amounts)
 
     STATEMENT OF OPERATIONS DATA
 
                                                   Three months ended
                                                        March 31,
                                                   2001          2000
 
     Revenues                                       $634           $807
     Operating expenses:
       Research and development                    2,210          1,343
       General and administrative                    644            371
       Non-cash charges                              803          1,881
         Total operating expenses                  3,657          3,595
         Loss from operations                    (3,023)        (2,788)
     Net interest income                             961             70
 
     Net loss                                   $(2,062)       $(2,718)
     Deemed dividend upon issuance of
      convertible preferred stock                     --        (1,500)
     Net loss attributable to
      common shareholders                       $(2,062)       $(4,218)
 
     Core operating loss*                       $(1,259)         $(837)
 
     Basic and diluted net loss
      per common share attributable
      to common stockholders                     $(0.09)        $(0.71)
       Less per share effect
        of deemed dividend                            --        $(0.25)
       Adjusted net loss per share               $(0.09)        $(0.46)
       Less per share effect of
        non-cash charges                         $(0.03)        $(0.31)
       Adjusted net loss per share               $(0.06)        $(0.15)
 
     Shares used in basic and diluted
      net loss per common share                   22,078          5,947
 
 
     * Excludes other income (loss) charges for stock-based compensation,
 acquisition of in-process technologies, and a deemed dividend related to the
 issuance of preferred stock.
 
 
     CONDENSED BALANCE SHEET DATA
                                              March 31, 2001  Dec 31, 2000
     Cash, cash equivalents,
      and investments                            $63,938        $64,681
     Total assets                                 67,942         68,925
     Total stockholders' equity                   65,859         66,890
 
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SOURCE Sangamo BioSciences, Inc.
    RICHMOND, Calif., April 25 /PRNewswire/ --
 Sangamo BioSciences, Inc. (Nasdaq:   SGMO) today reported financial results for
 the first quarter ended March 31, 2001.  The core net loss, which excludes
 non-cash charges, was $1.3 million, or $0.06 per share.  In the comparable
 quarter of 2000, Sangamo reported a core net loss of $837,000, or $0.15 per
 share.  Non-cash charges were $803,000 in the first quarter of 2001 as
 compared to non-cash charges of $3.4 million in the first quarter of 2000.
 Including the non-cash charges, the net loss was $2.1 million, or $0.09 per
 share in the first quarter of 2001 as compared to a net loss of $4.2 million,
 or $0.71 per share, in the same period last year.
     Revenues for the first quarter of 2001 were $634,000 as compared to first
 quarter 2000 revenues of $807,000.  The principal components of first quarter
 2001 revenues were Universal GeneTools(TM) revenues and revenues from
 Sangamo's partnerships in the areas of human therapeutics and plant
 agriculture.  During the first quarter of 2001, the company received payments
 of approximately $2 million from collaborators that management expects will be
 recognized as revenues in 2001.  As previously stated, Sangamo expects
 revenues to vary significantly by quarter.  The company also reiterated that
 management expects annual revenues to increase two to three times the level
 achieved in 2000.
     Sangamo recognizes revenues in accordance with the Securities and Exchange
 Commission (SEC) Staff Accounting Bulletin No. 101, which summarizes the
 SEC's views on applying generally accepted accounting principles to revenue
 recognition and specifically addresses revenue recognition for upfront
 non-refundable fees earned in connection with research collaboration
 agreements.  Upfront fees are required to be recognized over the term of the
 individual contract rather than at the time of receipt.
     Excluding the non-cash charges, total first quarter 2001 expenses were
 $2.9 million as compared to $1.7 million in the prior year period.  The
 increase in expenses was primarily due to greater research and development
 activity, which resulted in a 65 percent increase in expenses over last year
 and costs associated with being a public company.  Research and development
 expenses were $2.2 million for the three months ended March 31, 2001 as
 compared to $1.3 million for the first quarter of 2000.  General and
 administrative expenses were $644,000 for the first quarter of 2001 as
 compared to $371,000 for the same period last year.
     Non-cash expenses in the first quarter of 2001 totaled $803,000, as
 compared to $3.4 million during the same quarter of 2000.  Non-cash expenses
 in the first quarter of 2001 were due to stock-based deferred compensation
 charges.  The non-cash charges during the same period last year included a
 one-time expense of approximately $1.0 million for the issuance of common
 stock related to the licensing of certain technology and stock-based deferred
 compensation charges of $831,000.  The company also incurred a $1.5 million
 deemed dividend related to issuance of preferred stock during the first
 quarter of 2000.
     Net interest income for the first quarter of 2001 was $961,000 as compared
 to $70,000 in the comparable period last year.  The higher net interest income
 reflects the higher cash balances resulting principally from the company's
 initial public offering completed in April 2000.
     At March 31, 2001, the company had cash, cash equivalents, and investments
 of $63.9 million.  Cash used in operations during the first quarter of
 2001 was approximately $500,000.  Total shares outstanding at March 31, 2001
 were 22.3 million.  One year earlier there were 6.6 million shares
 outstanding.  The change in the number of shares outstanding was due primarily
 to the conversion of the company's preferred stock into common stock and the
 completion of the company's initial public offering.
 
     First-Quarter 2001 Highlights
 
     Highlights of the first quarter included:
     -- Sangamo was granted a patent in the United Kingdom that includes claims
        covering the activation or repression of any endogenous gene in any
        cell type, or organism, using ZFP transcription factors.  Similar
        applications with similar claims have been filed in many countries
        throughout the world.
     -- Sangamo established its first plant agriculture collaboration with
        Renessen LLC, a joint venture between Cargill and Monsanto Company
        using Sangamo's proprietary gene regulation technology to enhance the
        value of certain crops for the animal feed and processing industries.
     -- Sangamo reported the use of the company's proprietary zinc finger
        DNA-binding proteins (ZFPs) to regulate the production of vascular
        endothelial growth factor A (VEGF), a protein that plays a critical
        role in the formation of new blood vessels, and may be useful in the
        treatment of certain forms of cardiovascular disease.
     -- Sangamo obtained worldwide rights to a novel cell-based molecular
        screening system developed at The Massachusetts Institute of Technology
        and to certain technology developed at Harvard University.
 
     About Sangamo
     Sangamo is focused on the research and development of novel transcription
 factors for the regulation of gene expression.  Sangamo's Universal Gene
 Recognition(TM) technology enables the engineering of transcription factors
 known as zinc finger DNA-binding proteins, or ZFPs.  By engineering ZFPs so
 that they can recognize a specific gene, Sangamo has created ZFP transcription
 factors that can control gene expression and, consequently, cell function.
 The company intends to establish Universal Gene Recognition as a widely used
 technology for commercial applications in pharmaceutical discovery, human
 therapeutics, clinical diagnostics, agriculture, and industrial biotechnology.
 Over twenty leading pharmaceutical and biotechnology companies have utilized
 ZFPs.  In addition, Sangamo is developing novel ZFP-based therapeutics for the
 treatment of cardiovascular disease.  For more information about Sangamo,
 visit the company's web site at www.sangamo.com.
 
     This press release contains forward-looking information within the meaning
 of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
 Exchange Act of 1934, and is subject to the safe harbors created by those
 sections.  Actual results may differ materially from these forward-looking
 statements.  See the company's SEC filings, and in particular, the risk
 factors described in the company's Annual Report on Form 10-K and its most
 recent 10-Q.  Sangamo assumes no obligation to update the forward-looking
 information contained in this press release.  Further, Sangamo assumes no
 obligation to update any guidance given on its upcoming conference call.
 
 
                           SELECTED FINANCIAL INFORMATION
                      (In thousands, except per share amounts)
 
     STATEMENT OF OPERATIONS DATA
 
                                                   Three months ended
                                                        March 31,
                                                   2001          2000
 
     Revenues                                       $634           $807
     Operating expenses:
       Research and development                    2,210          1,343
       General and administrative                    644            371
       Non-cash charges                              803          1,881
         Total operating expenses                  3,657          3,595
         Loss from operations                    (3,023)        (2,788)
     Net interest income                             961             70
 
     Net loss                                   $(2,062)       $(2,718)
     Deemed dividend upon issuance of
      convertible preferred stock                     --        (1,500)
     Net loss attributable to
      common shareholders                       $(2,062)       $(4,218)
 
     Core operating loss*                       $(1,259)         $(837)
 
     Basic and diluted net loss
      per common share attributable
      to common stockholders                     $(0.09)        $(0.71)
       Less per share effect
        of deemed dividend                            --        $(0.25)
       Adjusted net loss per share               $(0.09)        $(0.46)
       Less per share effect of
        non-cash charges                         $(0.03)        $(0.31)
       Adjusted net loss per share               $(0.06)        $(0.15)
 
     Shares used in basic and diluted
      net loss per common share                   22,078          5,947
 
 
     * Excludes other income (loss) charges for stock-based compensation,
 acquisition of in-process technologies, and a deemed dividend related to the
 issuance of preferred stock.
 
 
     CONDENSED BALANCE SHEET DATA
                                              March 31, 2001  Dec 31, 2000
     Cash, cash equivalents,
      and investments                            $63,938        $64,681
     Total assets                                 67,942         68,925
     Total stockholders' equity                   65,859         66,890
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X97773435
 
 SOURCE  Sangamo BioSciences, Inc.